Jail terms for importers: Xenophon

Simon Pisoni from the Communications, Electrical and Plumbing Union is angry asbestos imports remain a problem more than a decade after the ban.

"We've seen the devastation that it's caused to people working on this type of material, and so for it to be imported and get that same exposure again is unforgivable," he said.

Workplace safety authority Safework SA said it was working with RJE on a plan to remove the asbestos in South Australia, but the product poses no health risk in the meantime.

If you're an importer and your product has asbestos in it, unless you've done everything possible to check and double check, you should face a potential jail term.

Senator Nick Xenophon

RJE has previously said it believed the risk to workers who installed the sheeting in the Adelaide substations was "negligible".

It said it was assured the product was "asbestos free" when it was purchased from China.

Independent Senator Nick Xenophon is calling for more scrutiny of overseas building products and greater penalties.

"This needs a comprehensive approach [which] needs to include Customs doing their job, not just having random searches," he said.

"It needs certification of the supply chain so that if you're an importer and your product has asbestos in it, unless you've done everything possible to check and double check, you should face a potential jail term."

Products, importers and manufacturers on watch-list

Building products are not the only imports tainted with asbestos - children's crayons and car parts have also come under Australian Border Force (ABF) scrutiny.

The ABF said all cargo identified as "high risk" is physically examined, and the agency currently has a watch-list of more than 40 products, importers and manufacturers.

An ABF spokesman said the issue was discussed during a trip to China last year:

"The Commissioner met with a number of senior Chinese customs officials and discussed a number of border control and trade issues of mutual interest and concern.

"The ABF continues to engage with relevant Chinese agencies to enhance cooperation on border issues of shared concern, including the importation of asbestos."

But the agency would not confirm which companies were currently under investigation for illegal asbestos importation in building products.

Unions have said the problem could worsen as a result of the China-Australia Free Trade Agreement (ChAFTA), a prospect that also concerns asbestosis victim Terry Miller.

If it contains that then I think that company and all its subsidiaries should be banned from sending anything into Australia.

Asbestos victim Terry Miller

Mr Miller worked at a James Hardie plant in Adelaide for 21 years, and is now president of the Asbestos Victims Association SA.

He is worried about a new wave of asbestos, and a new generation of victims, warning Australia could end up as a "waste dump".

"Customs just don't have the resources, don't have the manpower to inspect everything that's coming in," he said.

"What I would like to see is any company that's caught sending stuff here, or people who are getting it on the cheap because they can, if it's found to contain asbestos ... it should be sent back.

"There should be a significant fine and the company that produced it and branded it, as many of them do, "asbestos free" - if it contains that then I think that company and all its subsidiaries should be banned from sending anything into Australia."

Fines of up to $170,000 can be applied for illegal imports.

A Senate inquiry into non-conforming building products resumes tomorrow.